AbbVie Inc (ABBV)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 6,524,000 | 8,610,000 | 22,957,000 | 19,759,000 | 14,677,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,325,000 | 10,360,000 | 17,254,000 | 15,408,000 | 13,076,000 |
| Return on total capital | 196.21% | 83.11% | 133.05% | 128.24% | 112.24% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $6,524,000K ÷ ($—K + $3,325,000K)
= 196.21%
AbbVie Inc's return on total capital has seen fluctuations over the years based on the data provided. As of December 31, 2020, the return on total capital stood at an impressive 112.24%, indicating efficient utilization of both equity and debt to generate profits. The return increased to 128.24% by December 31, 2021, suggesting a further enhancement in the company's capital efficiency.
By December 31, 2022, AbbVie Inc's return on total capital reached 133.05%, signifying a continued strong performance in utilizing its capital to generate returns. However, there was a notable decline in the return on total capital by December 31, 2023, standing at 83.11%, which could imply challenges or changes in the company's capital structure or profitability during that period.
The most recent data point of December 31, 2024, shows a significant recovery and improvement in AbbVie Inc's capital efficiency, with a return on total capital of 196.21%. This exceptionally high return indicates a robust performance in leveraging its capital resources to generate profits.
Overall, AbbVie Inc's return on total capital demonstrates variations over the years, with a general trend of strong capital efficiency and performance, with occasional fluctuations that may be influenced by internal strategic decisions or external market factors. It is essential for investors and stakeholders to monitor these ratios closely to assess the company's operational effectiveness and financial health.
Peer comparison
Dec 31, 2024